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As products become more and more similar, as services become increasingly complex, as
competition becomes tougher and markets become less manageable, brands come into
play to solve some central problems for consumers. For companies and providers alike, a
brand is the single most important tool for acquiring a unique company profile that sets
them apart from others and, at the same time, makes them desirable. For consumers,
brands provide a sense of orientation in the ever-expanding flood of products and
suppliers, which has long made choice a struggle rather than a pleasure.
For all intents and purposes, the functional or qualitative aspects of products have
become secondary to consumers making purchasing decisions. Consumers increasingly
choose brands. And identify with brands.
In a nutshell: strong brands make themselves visible within the market, provide a
competitive advantage in that they are already anchored in the minds of consumers
during the act of purchasing, and, finally, serve as the basis for long-term customer
loyalty.
Measurable success
The value of strong brands is well founded. And this value can be measured. In the
current valuation of the “World’s Most Valuable Brands”, an astonishing amount of
financial value is associated with brands. The world’s top three brands represent enormous
capital value: the value of Coca-Cola is estimated at 69 billion US dollars, Microsoft
follows at 65 billion dollars and IBM at 53 billion dollars. The BMW brand has an
estimated value of 14 billion dollars.
For this reason, brands are not merely an “on-the-side” job for communication
professionals. Instead, they play a crucial role in successful corporate strategy. A
significant amount of money is invested in brands, and the value of communication
measures is proven. Ongoing and focused brand management and continuous investment
in the building up of a strong brand pay off.
To make the core values of a brand come through consistently the central character traits
of the brand must be established. This is because in communication, brands act like
individuals: those lacking vision or clear goals do not come across as convincing. In other
words: one who doesn’t know what he wants to communicate communicates poorly.
An additional challenge emerges when a company must make a very large or complex
range of products and/or services come to life. In this case, a more or less complicated
branding structure is necessary to achieve clarity and transparency. In addition, the
branding structure must be developed according to the rules of efficient business
practices. In view of the necessary requirements for making a brand global, the right
branding structures must be implemented in order to give the brand even a chance of
succeeding. An umbrella brand strategy makes use of possible synergies among different
areas of product offer. Often it is only after a drastic reassessment and revision of an out-
of-hand brand portfolio that the critical mass – the right balance – can be achieved.
Third: Penetrate. In the end, it is not the brilliance of the creative idea (without which, of
course, nothing is possible), but rather the enduring and recurrent implementation and
enforcement despite daily challenges that counts.